At the end of every financial year, you must allocate income to the beneficiaries of a trust, partnership, and sole trader. Active Ledger can be set up to accommodate this situation based on your firm's requirements.
We'll use the example above to guide you through setting up your equity section.
Go to the Ledger Admin area and select standard chart.
Set terminology to a sole trader.
Add these three accounts to the Equity section as displayed.
Allocate and import your accounting data. Allocate any capital contributions or accounts to the equity area.
Select the wand and link the account to your firm standard account.
The accounts will show a green tick once linked.
Select the dataset/other information and enter the distribution as per the above screenshot
In the Accounts area (2nd tab down on the left), you will need to allocate these two new accounts
Profit will go to the standard account as set previously
Step 5A - Remember to post the Automated Journal
Allocate the profit clearing to the profit distribution area in Equity.
The new balance sheet is shown above.
Customise the balance sheet in the report. Collapse retained earning.
Your equity section will look like this example.